City of Newark Approves Initial Restoration Plan for Landmark Hahne & Company Building at 609 Broad Street

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Published: July 23, 2013 11:13 a.m. ET

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Redevelopment of the iconic building will continue the revival of downtown Newark

NEW YORK, Jul 23, 2013 (BUSINESS WIRE) --
The City of Newark Central Planning Board (CPB) today approved a plan by
L+M Development Partners (L+M), the Hanini Group (Hanini), and the
Goldman Sachs Urban Investment Group (GS) to restore the landmark
400,000 square-foot Hahne & Company (Hahne's) building at 609 Broad
Street in Newark, New Jersey. This decision signals a continued
commitment by the City to bring important new housing and retail
opportunities to downtown Newark. The Prudential Insurance Company of
America provided a $7.5 million loan through its Social Investments
program to help the development team acquire the building.

"The Hahne's building is an icon of the city's past, not only for those
who admired its magical window displays decades ago, but also for
current residents who now live and work around it," said Samer Hanini of
the Hanini Group. "This will be one of the largest rehabilitation
efforts in Newark's historic downtown in recent years, and will be a
critical piece in the city's revitalization."

In honor of the building's historic significance, the current proposal
will preserve key elements of the four-story building, including its
facade and original signage. The first floor will feature retail space
designed to re-engage the building with Broad Street's vitality and
augment the growth of small businesses on the Halsey Street corridor.
Upper floors will feature residential units with the addition of a fifth
floor for penthouse apartments. The plan also involves constructing a
new six-story mixed-use building at the vacant lot on the corner of
Halsey and New Streets, which will be connected to Hahne's via a shared
lobby and atrium.

Once completed, redevelopment of the site will provide more than 180
residential units, 80,000 square feet of space for commercial,
community, and office use on upper floors, nearly 80,000 square feet of
ground-level retail space, and an underground parking garage with more
than 200 spaces. As a geographic cornerstone of downtown Newark, a
restored Hahne's will also connect University Heights, home of five
major educational centers--Rutgers University, New Jersey Institute of
Technology, Seton Hall Law School, Berkeley College, and Essex County
College--with the New Jersey Performing Arts Center (NJPAC).

"The Hahne's building is the lynchpin connecting the various corridors
that make up downtown Newark," said Ron Moelis, Chairman and CEO of L+M.
"Restoring the building will not only add to the City's energy, but also
serve as a catalyst for attracting new investment, residents, and
economic activity that will ensure the success of Newark's revival."

"We are proud to partner with L+M, Hanini, and Prudential on this iconic
project," said Alicia Glen, managing director and head of the Goldman
Sachs Urban Investment Group. "By transforming a building that has sat
vacant for decades, we will return a landmark to productive use and
catalyze the revitalization of critical corridors in Downtown Newark."

The current proposal complements larger efforts to renew Newark's
downtown core, with the redevelopment of nearby Military Park and
Prudential's new office tower, which is being constructed on an adjacent
block. Nestled between two major transportation hubs and with public
storefronts on three sides, a rehabilitated Hahne's will be restored as
an important commercial center. In addition, its residential entrance on
Halsey Street--sometimes referred to as Halsey Village--a one-way street
now home to a vibrant mix of new restaurants and cafes, and will fill
what's been a major void in the neighborhood.

"We're proud to partner with a team that shares our commitment to
Newark's future and to play a role in returning this iconic building to
commerce," said Lata Reddy, vice president, Corporate Social
Responsibility, at Prudential. "Redeveloping the Hahne's building is
part of Prudential's broader strategy to invest in projects that
integrate downtown's numerous assets into a thriving and cohesive
destination. We are delighted to help bring to life a project that will
have a tremendous impact on the area's vitality."

"The Hahne's Building is one of Newark's great historic structures, and
a centerpiece of the downtown and Military Park area. We are excited
that the development will preserve the building's beautiful
architectural features while adding market-rate apartments, office
space, and shopping options. The new Hahne's building will serve as
another reminder that our city not only cherishes its history, but grows
stronger and more vibrant every day," said Mayor Cory A. Booker.

Designed by architect Goldwin Starrett and completed in 1901, Hahne's
was Newark's first commercial building designed specifically as a
department store. Originally servicing the carriage trade and later
setting trends in retailing that were followed by other merchandisers,
Hahne's was sold to May Department Stores Company, owner of Lord &
Taylor, in 1987 and has remained vacant since 1987.

In the proposed restoration, Beyer Blender Belle Architects and Planners
LLP, along with East Rutherford- and Newark-based Inglese Architecture
and Engineering, will collaborate to provide architectural and
engineering services. Ulana Zakalak, principal at Zakalak Associates
LLC, will continue working with the redevelopment team as a preservation
consultant. Also involved in the project are developers Crawford Street
Partners and Regan Development Corporation.

Partners in the Hahne's redevelopment will continue to work with the
City of Newark on next steps of the proposed rehabilitation. These local
approvals will better position the redevelopment to secure competitive,
public financing that may be available.

About L+M Development Partners

Since 1984, L+M Development Partners has been an innovator in developing
quality affordable, mixed-income and market rate housing, while
improving the neighborhoods in which it works. A full-service firm, L+M
works from conception to completion, handling development, investment,
construction and management with creativity that leads the industry. L+M
is responsible for more than $2.5 billion in development, investment and
construction and has created more than 15,000 high-quality units in the
tri-state area alone. With Hahne's, L+M continues its investments in
Essex County, New Jersey: 50 & 55 South Essex, currently under
construction in the city of Orange's transit village, are projected to
be completed in early 2014 (for more information, see www.50-55southessex.com).
The firm is also expanding its geographic footprint to the Gulf region
and West coast. Community leaders, government officials and investment
organizations turn to L+M because of its consistent track record of
excellence.

L+M is a double bottom line company, where its success is measured not
only in financial returns but also by the positive impact it makes. L+M
takes pride in its long-standing dedication to the communities it
serves, demonstrated through an annual scholarship fund, job training
programs and substantial support for local nonprofits. L+M brings a
superior level of commitment to its investments in developments, and
equally important, to its investment in people. Additional information
can be found at www.lmdevpartners.com.

About the Hanini Group

The Hanini Group has become a notable presence in Newark's development
scene. Since 2004 the Hanini Group has completed over $50 million worth
of restorations and rehabilitation, bringing New York loft style units
to the forefront of Newark's residential market and retail that has
already altered the outlook for Newark's future. The firm is a unique
blend of vision and practicality that brings a fresh perspective to
Newark's emerging development, while staying ahead of the curve in the
latest green building practices. Committed to Newark's future, the firm
maintains a dedication to producing high-end, cost effective buildings
in Newark, while preserving historical integrity, defines the vision of
the firm.

About the Urban Investment Group at Goldman Sachs

Established in 2001, the Urban Investment Group deploys the firm's
capital by making investments and loans that benefit urban communities.
Through its comprehensive community development platform, UIG is a
catalyst in the revitalization of underserved neighborhoods. UIG has
committed more than $2.8 billion, facilitating the creation and
preservation of approximately 13,200 housing units - the majority of
which are affordable to low, moderate and middle-income families - as
well as nearly 1,300,000 square feet of community facility and more than
1,900,000 square feet of commercial and retail space.

Crawford Street Partners, LLC (CSP) is a real estate investment and
services company. Since its establishment in 2002, CSP's mission has
been to create unique, high quality commercial and residential spaces
from abandoned and/or underutilized properties. By taking a holistic and
responsible approach to development, CSP concentrates on targeted
neighborhoods located in Newark and surrounding towns. Throughout its
brief history CSP's projects have been recognized for their innovation,
beauty, functionality and commitment to improving neighborhood
streetscapes. CSP takes great pride in creating new jobs, attracting new
businesses and filling the need for affordable, quality commercial and
residential space while changing, for the better, one neighborhood at a
time.

About Prudential

The Prudential Insurance Company of America is a subsidiary of
Prudential Financial, Inc.
PRU, +0.24%
a financial services leader with
approximately $1.06 trillion of assets under management as of March 31,
2013. It has operations in the United States, Asia, Europe, and Latin
America. Prudential's diverse and talented employees are committed to
helping individual and institutional customers grow and protect their
wealth through a variety of products and services, including life
insurance, annuities, retirement-related services, mutual funds and
investment management. In the U.S., Prudential's iconic Rock symbol has
stood for strength, stability, expertise and innovation for more than a
century. For more information, please visit http://www.news.prudential.com/.

About Regan Development Corporation

Regan Development Corporation is family run business for 17 years, has
developed over $172 million worth of residential and commercial real
estate, improving the lives of thousands in the process. From
residential opportunities for young working families and senior citizens
to commercial shopping opportunities in urban and suburban settings,
Regan Development has always worked for community improvement. Long Term
Investment in Community In addition to development, the firm maintains
long term ownership in the large majority of its projects, helping to
maintain the high standard set at construction. Their efforts in
revitalization have won accolades and awards from towns and cities
throughout the tri-state area. Regan Development's work is about more
than creation or restoration of buildings, it is about restoring and
improving communities.

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